What is Home Insurance

There are many different types of insurance for the home, from buildings cover to conetnts cover and at first they may seem confusing and difficult to dissect.

Home insurance is split into two main categories: Buildings insurance - those policies which cover the actual building you live in, and Contents insurance - those policies that cover the contents of your property.

Also be sure to let any potential insurers know all the details of your property, even if the policy may end up costing more. For example, not informing your insurer that you live in an area with a high flood risk may actually invalidate your policy so that in the event of flood damage to your home you may find yourself unable to make a claim.

Is Home Insurance Necessary?
Every homeowner is recommended to have a buildings insurance policy, in fact in order to attain a mortgage most companies will insist that you have one, as this will ensure that sufficient compensation will be handed out to either rebuild your home to the same standard or repay the mortgage should the house be destroyed.

Buildings Insurance
Buildings insurance is household insurance that protects the basic structure and fabric of your home, such as the walls, roof and foundations. It is designed to provide you with financial aid to rebuild your home should it be damaged or totally destroyed through a number of situations, e.g. fire damage to your property. Fire, smoke and explosions
Burst pipes and other incidents of water leakage
Vandalism or third party damage
Subsidence
Storm and flood damage

Apart from the basic structure of the house, the policy should also cover your windows, roofing, kitchen and bathroom, floors, electrical wiring and plumbing against damage caused by any of the listed events.

Buildings insurance quotes can be arranged over the phone or online and can be offered combined with contents insurance for ease and value. Some companies also offer a discount if a buildings insurance policy is purchased online or if you purchase your building and contents insurance as a combination.

Insurance providers differ in terms of policies offered, so make sure you compare a range of deals from different insurers and always remember to read the small print! Contents Insurance
Contents insurance works by protecting your belongings and possessions that are not part of the fabric of your house, e.g; inside the home. If you had a burglary, which resulted in any of these items being stolen, or you suffered a fire or flood, your contents insurance would pay to help you replace your lost, damaged or destroyed belongings.

Included in the contents policy will usually be anything that is not a fixed part of your home: computers, TV, HI FI and other electrical appliances, along with clothes, jewellery and furniture.
Your insurer will usually ask you a series of questions in order to determine your premium, which may include: your current employment details, your past claims record and questions regarding your occupancy at the property - whether you are there in the daytime or out of the country for six months at a time can have a big impact on the cost of your policy.

Remember, insurance companies are businesses and their main aim is to make a profit, so they will generally try to minimise the amount of money they pay out. Costs Postcodes - play a major part in household insurance premiums. The cost of household insurance varies by more than 300%, depending on the area in which you live. Social trends - these can have a negative or positive affect on your premiums, for example several years of high aggregate national claims levels can result in higher general levels of premiums.

Security - If you don't have any type of security installed at your home then you can expect to pay higher premiums, as your house will be deemed as being at a higher risk of thefts and burglaries. Some insurance companies can have their own unique requirements as to the type of security system that need to be installed, so find out more before proceeding. In addition to burglar alarms, fitting locks to your windows and doors is also recommended.

Area of residence - Living in what is deemed as a high-risk area will increase the cost of your insurance. No Claims Discount - If you have had household insurance in the past and have not made a claim, make sure that the insurance company are aware of this. As with car insurance, no claims discounts increase with time.

Level of Cover
When taking out insurance on your home it is important to have a policy that meets all of your requirements. However, do not take out more than what is needed as extra costs will build rapidly. The level of cover will differ depending on the inclusion of the following in your policy:

Burglars & Security
Fire
Subsidence
Frozen Pipes
Extensions
Storms & Flooding
Holiday Homes


Finally, remember to review your buildings and contents insurance frequently, making sure it is kept up to date with any alterations made to the house or any major purchases. You may struggle to recover any money when making a claim if you fail to keep your insurance company updated.